BILL NUMBER: AB 2544	CHAPTERED  09/29/00

	CHAPTER   905
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	PASSED THE SENATE   AUGUST 29, 2000
	AMENDED IN SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 22, 2000
	AMENDED IN SENATE   AUGUST 14, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   MAY 17, 2000
	AMENDED IN ASSEMBLY   MAY 4, 2000

INTRODUCED BY   Assembly Member Calderon
   (Coauthor: Senator Solis)

                        FEBRUARY 24, 2000

   An act to amend Sections 304, 313, 502, 506, 507, 508, 511, 605,
607, 705, 706, and 707 of, to add Sections 314.5 and 503.1 to, and to
repeal Section 602 of, the San Gabriel Basin Water Quality Authority
Act (Chapter 776 of the Statutes of 1992), relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2544, Calderon.  San Gabriel Basin Water Quality Authority Act.

   (1) The San Gabriel Basin Water Quality Authority Act authorizes
the San Gabriel Water Basin Quality Authority to plan, finance, and
implement groundwater remediation activities, as prescribed.  The act
requires the board of the authority to be composed of seven members.

   This bill would require the appointment of two additional producer
members, as defined, and their alternates, pursuant to specified
procedures and would prescribe their terms of office.
   (2) The act provides for the authority to assume a limited status
function under certain circumstances and, except for provisions
relating to the disposition of the property and assets of the
authority, repeals the act on July 1, 2002.  The act requires the
board to commence procedures to institute a limited status function
if the board makes specified determinations.
   This bill, instead, would extend the repeal date to July 1, 2005.
The bill would, in addition, require the board to commence procedures
to institute a limited function status if the board determines that
it has secured funding to comply with specified requirements.
   (3) The act requires the Los Angeles Regional Water Quality
Control Board to report to the Legislature on or before January 1,
1997, on the progress of the authority with regard to prescribed
actions of the authority.
   This bill would, instead, require the State Water Resources
Control Board, in consultation with the Los Angeles Regional Water
Quality Control Board, to report to the Legislature on or before
January 1, 2004, and would require the report to contain
recommendations for improving the progress of the authority.
   (4) The act prohibits any person from serving as a member of the
authority if that person receives 10% or more of his or her income
from any person or entity subject to regulation by the authority, as
specified.
   This bill would provide for a specified exception to that
prohibition with regard to a producer member.
   (5) The act generally requires all actions of the board to be
approved by an affirmative vote of a majority of all of its members.

   This bill would require, for specified actions, an affirmative
vote of a majority of all of the members, including one city member,
one producer member, and one water district member.
   (6) The act authorizes the authority to impose an annual pumping
right assessment, not to exceed $5 per acre-foot, to pay for
administrative costs and authorizes the authority to impose an annual
pumping right assessment, not to exceed $20 per acre-foot, for other
purposes.
   This bill would repeal the authority to impose the $5 charge.  The
bill would, instead, authorize the authority to impose an annual
pumping right assessment, not to exceed $13 per acre-foot, for those
other purposes, including the payment of administrative costs.
   (7) The act authorizes the authority to exempt a producer from the
annual pumping right assessment in connection with pumping from a
contaminated well, as specified.
   This bill would require the board of the authority to annually
consider exemptions when it adopts the authority's budget.
   (8) By imposing requirements on the authority, the bill would
impose a state-mandated local program.
  (9) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 304 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 304.  "Board member" or "member" means a member of the board.

   (a) "Alternate member" or "alternate" means the nominee receiving
the second highest number of votes in an election of a city member or
the person appointed by a water district to act in the place of a
member if that member is absent or the member has vacated the office.

   (b) "City member" means a member elected by the cities with
pumping rights or the cities without pumping rights.
   (c) "Water district member" means a member appointed by one of the
water districts.
   (d) "Producer member" means a member who, pursuant to the
judgment, is a designee of a producer, other than a water district
described in Section 503 or a city described in Section 504, that is
a holder of not less than 5 percent of the prescriptive pumping
rights in the basin.
  SEC. 2.  Section 313 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 313.  "Public water system" means any entity that operates a
public water system, as defined in Section 116275 of the Health and
Safety Code.
  SEC. 3.  Section 314.5 is added to the San Gabriel Basin Water
Quality Authority Act (Chapter 776 of the Statutes of 1992), to read:

  314.5.  "Water association" means the San Gabriel Valley Water
Association.
  SEC. 4.  Section 502 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 502.  (a) The board shall be composed of seven members, three
of whom are appointed by the water districts, two of whom are elected
by the cities, and two of whom are producer members appointed
pursuant to Section 503.1.
   (b) No person who, directly or indirectly, at the time of election
or appointment, receives, or during the two-year period immediately
preceding election or appointment received, 10 percent or more of his
or her income from any person or public entity subject to regulation
by, or that receives grants from or contracts for work with, the
authority may serve as a member of the authority.
   (c) Notwithstanding subdivision (b), a producer member may receive
10 percent or more of his or her income from the producer that he or
she represents as a member of the authority and that is subject to
regulation by the authority.
  SEC. 5.  Section 503.1 is added to the San Gabriel Basin Water
Quality Authority Act (Chapter 776 of the Statutes of 1992), to read:

  503.1.  Two producer members and two alternates shall be appointed
by the board of directors of the Water Association.
  SEC. 6.  Section 506 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 506.  An alternate member shall act in the place, and perform
all of the duties, of the city member, producer member, or water
district member selected by the same cities or water district if that
city member, producer member, or water district member is absent
from a meeting of the authority or has vacated his or her office
until the vacancy is filled pursuant to this act.
  SEC. 7.  Section 507 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 507.  (a) Except as provided in subdivisions (b) and (c), the
terms of the members shall commence on the first Monday in January
and each member shall hold office for a term of four years and until
the successor takes office.
   (b) With respect to the initial board members, the terms of the
member appointed by the Three Valleys Municipal Water District and
the member elected by the cities without pumping rights shall expire
on January 1, 1995, and the terms of the remaining members shall
expire on January 1, 1997.
   (c) The terms of the initial producer members and alternates shall
commence on the first business day after the appointment of the
producer members and alternates.  The terms of the initial producer
members and alternates shall expire on the fourth January 1 following
commencement of their term.
  SEC. 8.  Section 508 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 508.  Any vacancy in the office of a member shall be filled as
follows:
   (a) A vacancy in the office of a member or alternate who was
appointed by a water district shall be filled by the appointing water
district by a resolution adopted by a majority vote of the district
governing board.  The person appointed to fill the vacancy shall meet
the qualifications applicable to the vacant office and shall serve
for the remaining term of the vacant office.
   (b) A vacancy in the office of a member or alternate who was
elected by cities shall be filled by a special election called by the
authority.  Only those cities which elected the member or alternate
to the office in which the vacancy has occurred are eligible to vote.
  Nominations and balloting shall be conducted in the same manner as
a regular election, except that the date of the election and time
periods shall be as prescribed by the authority.  The member or
alternate elected to fill a vacancy shall meet the qualifications
applicable to the vacant office and shall serve for the remaining
term of the vacant office.
   (c) A vacancy in the office of a producer member or alternate who
was appointed by the board of directors of the Water Association
shall be filled pursuant to Section 503.1.
  SEC. 9.  Section 511 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 511.  (a) Except as otherwise provided, all actions of the
board shall be approved by an affirmative vote of majority of all of
the members.
   (b) Notwithstanding subdivision (a), an affirmative vote of a
majority of all of the members shall include one city member, one
producer member, and one water district member to take any of the
following actions:
   (1) Adopt the authority's budget.
   (2) Pursue legal action pursuant to subdivision (c) of Section
407.
   (3) Impose an annual pumping right assessment pursuant to Section
605 or to continue an assessment pursuant to Section 614.
   (4) Make a determination pursuant to subdivision (a) or (d) of
Section 707.
  SEC. 10.  Section 602 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is repealed.
  SEC. 11.  Section 605 of the San Gabriel Basin Water Quality Act
(Chapter 776 of the Statutes of 1992) is amended to read:
  Sec. 605.  The authority may impose an annual pumping right
assessment, not to exceed thirteen dollars ($13) per acre-foot, to
construct facilities and acquire property, to retire promissory
notes, bond anticipation notes, bonds and certificate of
participation and other evidences of indebtedness, to pay for
administrative costs, and to pay for operations and maintenance of
projects constructed by and for the authority.  The authority shall
impose an assessment pursuant to this section for operation and
maintenance purposes only if, and to the extent that, money for
operation and maintenance purposes is not received from other sources
after reasonable efforts have been made to secure that funding.
However, no assessment shall be imposed for water extracted pursuant
to a conjunctive use storage agreement between the producer and the
water master, which the authority has approved.
  SEC. 12.  Section 607 of the San Gabriel Basin Water Quality Act
(Chapter 776 of the Statutes of 1992) is amended to read:
  Sec. 607.  (a) The authority may exempt a producer from all or part
of the annual pumping right assessment established pursuant to
Section 605 for water pumped and treated from a contaminated well if,
with the prior approval of the authority for the project, the
producer funds the design and construction of the wellhead treatment
system for that well.
   (b) The board shall annually consider exempting pursuant to
subdivision (a) when it adopts the authority's budget.
  SEC. 13.  Section 705 of the San Gabriel Water Basin Quality Act
(Chapter 776 of the Statutes of 1992) is amended to read:
  Sec. 705.  On or before January 1, 2004, the State Water Resources
Control Board, in consultation with  the Los Angeles Regional Water
Quality Control Board, shall report to the Legislature on the
progress of the authority with regard to actions undertaken pursuant
to Article 4 (commencing with Section 401), and any recommendations
regarding actions for improving the progress of the authority.
  SEC. 14.  Section 706 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 706.  (a) Except as provided in this section, this act shall
remain in effect only until July 1, 2005, and as of that date is
repealed, unless a later enacted statute, which is enacted before
July 1, 2005, deletes or extends that date.
   (b) Upon the repeal of this act, the assets and debts of the
authority shall be administered as follows:
   (1) The Los Angeles Regional Water Quality Control Board shall
dispose of the property and assets as appropriate.  The Los Angeles
Regional Water Quality Control Board shall receive reimbursement for
actual costs incurred related to the disposition of the property and
assets.  The cost recovery shall be from the proceeds of the
disposition pursuant to this section.  The proceeds, if any, of the
disposition shall be transferred to the Treasurer to be applied to
pay the debts of the authority and, if any proceeds remain, shall be
transferred to the Treasurer for deposit in the Hazardous Substance
Cleanup Fund for use in financing groundwater contamination
investigation and remediation in the basin.  Preference shall be
given in the disposition of assets of the authority to transfers to
producers who may be able to use the assets for the benefit of water
distribution systems and to provide for continued operation and
maintenance of the assets in order to further the purposes of this
act.
   (2) The Treasurer shall administer the payment of debts of the
authority.  The Treasurer shall apply the proceeds from the
disposition of assets to the payment of the debts.  If debts remain
after application of the proceeds from disposition of assets, the
Treasurer may continue to collect, in lieu of the authority, the
pumping right assessments authorized under either (A) Section 602 if
the debt relates to administrative costs or (B) Section 605 if the
debt is to repay warrants, notes, bonds, and other evidences of
indebtedness, or both, to make payments pursuant to leases or
installment sale agreements in connection with certificates of
participation, to pay for operation and maintenance costs of
facilities, and to make payments pursuant to any other financial
obligations.  All provisions set forth in Article 6 (commencing with
Section 601) relating to the levy and collection of the pumping right
assessments are not repealed and shall continue in effect until the
debts of the authority are paid, as determined by the Treasurer, who
shall notify the Secretary of State.  Upon receipt by the Secretary
of State of the Treasurer's notice, Article 6 (commencing with
Section 601) is repealed.  The Treasurer's authority to levy and
collect assessments under this act is limited according to the
provisions of this act and shall cease when all debts of the
authority have been paid.
  SEC. 15.  Section 707 of the San Gabriel Basin Water Quality
Authority Act (Chapter 776 of the Statutes of 1992) is amended to
read:
  Sec. 707.  (a) The board shall commence procedures to institute a
limited function status if the board determines, following a public
hearing, upon 30 days' notice, that its actions are in accordance
with both of the following or that it has secured funding to comply
with both of the following:
   (1)  The basinwide groundwater quality management and remediation
plan developed and adopted pursuant to Section 406.
   (2) Relevant records of decision issued by the United States
Environmental Protection Agency that apply within the boundaries of
the authority.
   (b) If the board makes the determination described in subdivision
(a), the authority shall commence negotiations with the water master
or a water district selected by the board for a contract, pursuant to
which the water master or a water district will act as an operating
agency.  The contract shall include provisions to do all of the
following:
   (1) Designate the water master or a water district to act as the
operating agency.
   (2) Require the operating agency to do all of the following:
   (A) Perform administrative services necessary to carry out the
functions and duties that the authority would otherwise perform,
relating to the funding, operating, maintenance, and repair of the
authority's groundwater remediation projects.
   (B) Monitor the progress of the groundwater remediation.
   (C) Prepare data and reports for submission to the board
presenting the status of the authority's projects and the groundwater
quality including a report on the accordance of the operating agency'
s actions with both of the following:
   (i) The basinwide groundwater quality management and remediation
plan developed and adopted pursuant to Section 406.
   (ii) Relevant records of decision issued by the United States
Environmental Protection Agency that apply within the boundaries of
the authority.
   (3) Provide for the budgeting and reimbursement of the costs and
expenses incurred by the operating  agency in carrying out the
functions and duties of the authority, including a reasonable amount
for overhead.
   (4) Provide that the use of any funds paid by the authority to the
operating agency shall be limited to the reimbursement of the
operating agency for costs incurred pursuant to the contract.
   (5) Provide that the board, if it determines that the authority is
required to return to full function pursuant to subdivision (d), may
terminate the contract with the operating agency.
   (c) After execution of the operations contract, the authority
shall operate in accordance with limited function status.  While the
authority is operating according to limited function status, the
authority may only perform the following functions:
   (1) Receive funds from those sources indicated in subdivision (d)
of Section 401.
   (2) Establish, levy, and collect pumping rights assessments
pursuant to Sections 602 and 605.
   (3) Satisfy the obligations of the authority under any bonds,
notes, warrants, or other evidence of indebtedness or under any
certificates of participation.
   (4) Oversee the operating agency's performance of, and enforce the
operating agency's obligations under, the operations contract
entered into pursuant to subdivision (b), and reimburse the operating
agency under that subdivision.
   (5) Enter into separate contracts, at the discretion of the board,
for other outside services, including, but not limited to,
professional, consulting, operating, maintenance, repair, and
replacement services and supplies.
   (6) Conduct elections for the elected members of the board.
   (7) Conduct meetings of the board, not less than semiannually, to
perform the limited functions of the authority, including all of the
following:
   (A) Budget for, and provide reimbursement to, the operating
agency.
   (B) Receive and review reports from the operating agency and
determine if any of the conditions described in Section 708 have been
met.
   (C) Set pumping rights assessments.
   (D) Act upon any other matters within the functions of the
authority while it operates under limited function status.
   (8) Perform any other administrative functions and other duties
reasonably necessary to carry out the limited functions of the
authority.
   (d) The board may restore the authority to full function if it
determines, following a public hearing, and upon 30 days' notice,
that a return to full function is required to allow the authority to
modify existing projects, to undertake new projects to effectively
remedy Superfund-related groundwater contamination, or to take other
actions, including, but not limited to, securing funding, to be in
accordance with both of the following:
   (1) The basinwide groundwater quality management and remediation
plan developed and adopted pursuant to Section 406.
   (2) Relevant records of decision issued by the United States
Environmental Protection Agency that apply within the boundaries of
the authority.
  SEC. 16.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
